Affordable car insurance in Toronto

Cheap car insurance in Toronto? How about over $500 cheaper with personalized premium coverages?

The best car insurance in Toronto

The consumer price index (CPI) measures the average cost of everything a Canadian would spend money on over the course of a year, including car insurance. Toronto, not surprisingly, has one of the highest CPI scores. 

Over 20 years, Toronto’s CPI jumped from 95 to 140.3 (by comparison, Canada’s CPI as a whole went to 136.4 in that time frame). That means everything costs 4 percent more in Toronto. And according to CTV News, car insurance in Toronto far eclipses that ratio with a 9.7 percent increase in just the last three years.

Today, car insurance rates in Toronto are some of the most expensive in the province — nine of the top 10 least-affordable areas for car insurance can be found within the GTA.

This trend has woken many people in Toronto up to what they’re paying for car insurance, what they’ll be paying in the future, and how to cut some of those costs. While the provincial average is between $1,500 and $1,700 per year, Toronto drivers spend around $2,900 on car insurance. 

Finding cheap car insurance in the city is almost as necessary as your car itself. Go online with Onlia and begin saving today!

1. Car insurance coverage in Toronto is mandatory

How mandatory is car insurance? Fines for driving without car insurance range from $5,000 to $50,000 and could be accompanied with a licence suspension.

The minimum requirement for car insurance in Toronto (and all of Ontario) is “basic” car insurance. This includes:

• Third-Party Liability to cover costs for anyone not involved in an accident you caused but is nonetheless affected; like if you were to knock over someone’s fence with your car.

• Statutory Accident Benefits to cover any living costs, medical expenses, rehab expenses, attendant care, lost income, lost education and/or funeral expenses you incur as a result of an accident.

• Direct Compensation to cover property automotive damage to your car, and keep you from having to wait for the other participant’s insurance company to get their Ps and Qs in order.

• Uninsured Automobile to cover costs if you happen to be in an accident with someone who doesn’t have car insurance.

How much is car insurance in Toronto

As mentioned above, basic car insurance in Toronto will run you ~$2,000 a year (or ~$170 a month). This can go up or down depending on your age, gender, specific location in the City, car model, yearly mileage, driving record and past claims; or if you share your car with anyone else.

2. Premium car insurance coverage is available in Toronto

No one would fault you for wanting extra protection out on the roads, especially given how much more likely you are to get into an accident now that Ontario is licensing 300,000 drivers every year.

These premium options include the following coverage:

Collision insurance

This is similar to your basic policy’s Direct Compensation Coverage, but the difference is important.

Basic car insurance will give you the money to fix your car for the percentage of the damage that was deemed not your fault. But it won’t cover the percentage of damage you’re considered ‘at-fault” for.

So, if you’re responsible for 25% of the accident, your basic coverage will cover 75% of the damages. Collision Insurance will cover the rest.

Collision insurance averages $500 to $700, but can be more expensive if you own a high-end vehicle. You can always lower your collision insurance premiums by agreeing to pay a higher deductible.

Comprehensive car insurance

This covers damage not caused by a collision, like if a tree limb falls on your roof, or your car is stolen, or your car is trampled by elephants escaped from the zoo (it could happen).

Unlike the Collision/Direct Compensation relationship, fault is a non-issue here. So, if you decide to park your car at the business end of an archery range and find a couple of bullseyes in your grill, comprehensive insurance will still apply.

Comprehensive car insurance costs around $100 to $300 per year on average (usually cheaper than a collision policy).

Extra third party coverage

As noted above, third-party coverage is a standard part of all basic car insurance in Toronto. But the minimum requirement is $200,000. After an accident involving a third party, if you’re on the hook for more than that, you’ll need to personally pay the difference. And that difference could be massive if you need a legal defence.

This is where that extra third-party coverage is so helpful. In a city like Toronto with over 6 million people, where the likelihood of a third-party being involved is so much greater (be it a car with multiple passengers, adjacent vehicles and by-standers), extra third-party coverage is even more valuable.

What you pay for extra third-party coverage will be determined by how much extra coverage you want.

Uninsured motorist coverage

As another standard and underfunded part of basic car insurance in Toronto, a bump to this will be much appreciated if you’re seriously injured in an accident with an uninsured or under-insured motorist. If you require medical care or time off work the other driver’s insurance can’t or won’t cover, this can be a lifesaver. The cost of this coverage will also depend on how much more you want.

Not happy with the price of your car insurance?

It could be up to $500 a year less with Onlia, and it’s not hard to save.

How to save on car insurance in Toronto

Now that you know what you’re looking at when you get a car insurance quote, let’s see what you can do about getting the cost down.

The type of vehicle you’re insuring

Some vehicles are more expensive to insure than others because of the “driver profile” most associated with a specific make/model and the likelihood of that pro-file being at fault in an accident.

For example, sports cars that top out at 350 km/h will always be more expensive to insure. But don’t think that the speed of a car or the recklessness of a driver is the only deciding factor. Only two of the most expensive vehicles to get car insurance in Toronto for are sports cars. The most expensive vehicle on the list is a family sedan, and it achieved its position by being the most stolen car on the road. The second most expensive car to insure in Toronto is an SUV with a unique shape that is difficult and expensive to repair.

The kind of driver training you have

The more driver education classes you take, the safer a driver you’ll become, and the lower you can get your car insurance costs. You can find winter and highway driving courses, as well as other safety-based classes that demonstrate lower risk to car insurance companies in Toronto and make them more likely to give you a better rate.

The sort of driver you are

This is where the car insurance company you choose makes the most difference because certain companies will offer discounts for meeting a variety of conditions.

Onlia, for example, offers discounts for having a clean driving record and a solid insurance history as a young driver or a senior citizen, and for investing in winter tires.

The insurance choices you make

Again, different insurance companies offer different deals for loyalty. Onlia offers discounts for insuring multiple vehicles, bundling home and auto, extended patronage and more.

Average car insurance in Toronto

As we mentioned above, the average price for car insurance in Toronto is over $2,000 a year. But by knowing what every line item is, and understanding where you can shave a few dollars here and there, you can bring that figure down and take full advantage of cheap car insurance in Toronto.

Discounts on car insurance you can't live without

Thinking about getting another car? About to retire? Onlia’s car insurance discounts can help you save no matter where you are along life’s journey.